Blame game of price rise (Editorial)
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14/05/2008
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Central Chronicle (Bhopal)
International blame game is going on over the rising prices of food items. America is blaming the poor of China and India for rising prices. India is blaming America's crop diversion for the same. At the same time, same type of blame game is being played in India too. Indian politicians looked very agitated over the remarks of American President Bush when he blamed increased consumption of food by Indian poor. The same politicians, however, forgot that a few months earlier, same type of remark was made by a central minister too. In short every one is bothered about scoring some points over others, instead of thinking about the problem and its solution. At least in India, the truth of price rise is different from other countries. Government is continuously putting the blame of price rise of food items on increased demand and decreased production. At the same time government statistics are saying that there is going to be record production of wheat this year. Even till three years back there was the problem of plenty in India. Government warehouses were overflowing with foodgrains and their management was proving a costly affair. Then how come in three years only, situation changed from problem of plenty to problem of scarcity? This scenario makes it totally clear that in India problem is in supply chain. It is the problem of deliverance. Even after 60 years of independence we are not able to devise a foolproof system of deliverance. When supply line is full then we don't feel the shortcomings of the delivery mechanism. When supply level goes down, then with the overwhelming leakages of the delivery mechanism, we start feeling the pinch and term it as increased demand or decreased production. In a comprehensive report, Public Accounts Committee (PAC) has slammed the Public Distribution System. It has put onus on PDS for leakages of 42% of grain and siphoning off of 36% budgetary subsidies from supply chain. It noted that more than 75% of total off take of BPL quota in Bihar and Punjab was diverted, 50-70% in Haryana, Madhya Pradesh and Uttar Pradesh, 25-40% in Assam, Gujarat, Himachal Pradesh, Karnataka, Maharashtra and Rajasthan and up to 25% in Andhra Pradesh, Kerala, Orissa, Tamil Nadu and West Bengal. In 2003-04, of 14.07 million tones of food grain dispatched, only around 5.93 million tonnes actually reached poor families. Target errors and bogus cards further reduced efficacy of PDS and in all, only 57% of BPL households were covered by it. While the percentage of poor had declined to 27.5% in 2004-05 from 36% in 1993-94, there was no comparative reduction in claimants. Calculations show that likely increase in number of poor due to population increase since March 2000 will be more than offset by the reduction in the poverty ratio between 1993-94 and 2004-05. Government, however, is continuing allocation based on March 2000 population. Number of BPL cards in Andhra Pradesh is equal to the 85% population of the state and prima facie itself this figure looks preposterous for this better developed state. Government audit itself shows 8.55 lakh ineligible families in Andhra Pradesh. These government figures clearly tell that problem in India is not of merely increased demand or decreased production. Fault lies with the supply chain, in our delivery mechanism. It is not that this fault is developed this year or last year only. It is there for long. When the supply line overflows, we don't feel this pilferage. When that over flow is not there, then only it pinches. Every government, including present one, knows about this. No one, however, tried to do any serious rectification, as present situation suits the politicians and other vested interests. When this overflow of supply chain is reduced and starts pinching, then the government of the day start taking all illogical but politically sound steps. Those steps make government look as if it is doing something. Present government is also going through the same rhetoric. It is taking same usual steps like ban on export of food grains, easier import of food item and ban on future trading of food items. Unfortunately these steps will pinch the poor more, as the farmer will get the lesser remuneration for his produce due to these steps and situation on price front will remain same. It is high time that public should call the bluff of the government and force it to change its delivery mechanism. If public is not ready to force this change, it will keep on suffering as production of food items are not going to increase in near future and when supply line is not over flowing then it is poor who will bear the brunt. Vivek Maheshwari